The LV= Wealth and Wellbeing Monitor reveals:
- Worsening financial outlook: - 57% (30m) expect their finances to worsen over the next three months
- Deterioration in finances over past three months: 59% (31m) say their finances have deteriorated over the past three months. Retirees were most likely to say there has been no real change in their finances (40% vs. 29% of 35-54 year olds)
- Outgoings increase: 67% (35m) say their total monthly outgoings have increased over the previous three months
- Saving falls: 33% (18m) said the amount they are saving has fallen in the last three months
- Supermarket spend is up, socialising down: 63% (33m) have seen an increase in their supermarket spending, while 33% (18m) are spending less money on socialising
Consumer confidence about their finances has worsened over the past 12 months
- 9% (5m) of UK adults have described their financial situation as “struggling a lot” and this has increased each quarter over the past year (up from 5% Sept 2021)
- 27% (14m) say they have seen a significant increase in outgoings
- 40% (21m) say they are worried about money (28% in Sept 21)
Not all demographic groups are being affected equally by the increase in living costs. More affluent retirees appear protected from many of the worst effects of the economic crisis, due to many having a good amount of savings and having paid off their mortgages. Retirees were far more likely than other ages to say they can currently comfortably afford their day to day costs and bills. (60% of retirees said this compared to 36% of 35-54 year olds).